Oracle filed on Monday to raise $20 billion through a $10 billion common-stock offering and $10 billion in investment-grade bonds, capital aimed at the data center buildout behind its AI cloud business. Shares fell between 3% and 4% in premarket trading after the regulatory filings.
The bond sale is split into six tranches: one floating-rate note maturing in 2029 and five fixed-rate notes maturing in 2029, 2031, 2033, 2037 and 2046. The preliminary filing did not set interest rates, tranche sizes, prices or share counts. The two offerings are independent, so either can proceed without the other.
BofA Securities is leading the bond sale, with Wells Fargo, Citigroup, JPMorgan and Deutsche Bank also involved. Oracle listed the use of proceeds as general corporate purposes, which could include capital expenditures, debt repayment, acquisitions, dividends and share buybacks.
Key facts
- 01Oracle filed Monday to raise $20B: a $10B common-stock sale and $10B in investment-grade bonds.
- 02The bonds come in six tranches maturing between 2029 and 2046; rates and sizes are not yet set.
- 03Oracle spent $55.7B on data centers in the fiscal year ending May 2026.
- 04Oracle says this is the final new capital it needs through fiscal 2030, excluding refinancing.
- 05Shares fell 3% to 4% in premarket trading and are down 33% in 2026.
The offering follows Oracle's October 28 investor day in Las Vegas, where the company said it would raise up to $20 billion in new capital through fiscal 2030, split evenly between debt and equity, excluding refinancing of existing debt. Chief Financial Officer Hilary Maxson presented that figure as a ceiling for the current buildout.
“We're announcing that this $20 billion, split evenly between debt and equity, is the final amount needed to fund the remainder of this cycle”— Hilary Maxson, Chief Financial Officer of Oracle
Monday's filing is Oracle's second $20 billion raise this year. The company completed a $20 billion share sale between June and August.
The spending behind it is large. Oracle spent $55.7 billion on data centers in the fiscal year that ended in May 2026. It expects capital spending to peak this fiscal year and next, then decline in fiscal 2029, and it expects free cash flow to turn positive in the second half of fiscal 2028.
The expansion supports data center capacity for AI customers including OpenAI, a customer to which Oracle has significant exposure. Oracle is targeting fiscal 2030 revenue above $225 billion, more than triple its fiscal 2026 revenue of $67.36 billion, along with adjusted earnings above $21 per share.
Oracle carried $125.3 billion in notes payable and other borrowings as of August 31, and about $236.1 billion in total liabilities.
Oracle shares were down 33% in 2026 through Friday and 50% over the past 12 months, as investors weigh how much debt the company is taking on to finance its AI infrastructure.
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